Oracle Jumps 6% After Pricing $20 Billion Financing to Expand Cloud Infrastructure

Key Facts

Oracle shares rose about 6% in morning trading on November 3 after the company announced the pricing of stock and bond offerings totaling $20 billion. 24/7 Wall St. attributed the rebound to easing financing concerns linked to the company’s expansion of its artificial intelligence and cloud computing infrastructure. Oracle shares closed at $119.22 on November 2, according to EL7 data. Reuters reported that the company plans to raise about $10 billion from the stock sale and another $10 billion from debt offerings. The announcement covers the pricing of the two offerings, while their completion is expected on November 4, subject to customary closing conditions.

The equity tranche comprises 86,206,897 shares at a public offering price of $116 per share, alongside bonds with different maturities. Oracle said completion of the stock offering and the bond issuance is not conditional on completion of the other, despite their announcement as part of one financing plan. The company expects each offering to close on November 4, subject to customary closing conditions. This means the pricing announcement does not establish that the financing proceeds have already reached the company’s accounts. Oracle said net proceeds, if both offerings are completed, will be used for general corporate purposes and may include capital expenditures, debt repayment, investments and acquisitions, dividends, and share repurchases.

The financing reflects the scale of spending required to expand data centers: cash used for capital expenditures rose to $28.5 billion in the first quarter of fiscal 2027, from $8.5 billion in the same period of the prior fiscal year. Oracle attributed the increase primarily to data center expansion. In the same quarter, total revenue grew 30% to $19.3 billion, while cloud revenue rose 62% to $11.6 billion. Cloud infrastructure revenue also increased 121% to $7.4 billion. These figures show rapid growth in the cloud business alongside a sharp rise in capital spending.

The company’s commitments are also expanding: remaining performance obligations stood at $664 billion on August 31, 2026, compared with $455 billion on the same date in 2025. Borrowing costs are reflected in the annual coupons on the new bonds, which range from 7.000% to 8.650%. The highest coupon, 8.650%, is on bonds due in 2046, while bonds due in 2029 carry a 7.000% coupon. At its investor day on October 28, Oracle said capital expenditures would peak in fiscal 2027 and 2028, then decline in 2029. The company expects that to support positive free cash flow of at least $30 billion in fiscal 2029.

Oracle shares fell nearly 6% on November 2 as investors reacted to the financing plan, before rebounding in the following morning’s trading. In the same morning moves on November 3, CoreWeave shares rose 7% to $53.75, and Microsoft shares gained 2% to $516.11. Those gains put Oracle’s move in the context of advances in other cloud computing stocks, but do not establish that questions about financing the company’s expansion have been resolved. Markets are now watching for the two offerings to close on November 4. Oracle said results for the second quarter of fiscal 2027 are expected on December 14, with cloud revenue growth targeted at between 65% and 71%.

Oracle has set financial targets extending beyond its next results date, including revenue of at least $225 billion by fiscal 2030 and free cash flow of at least $30 billion in fiscal 2029. These targets come as the company expects capital expenditures to decline in 2029 after peaking in fiscal 2027 and 2028. The second-quarter results, expected on December 14, will provide an indication of cloud revenue performance against the targeted range of 65% to 71%. Completion of the financing on November 4 will be the nearest milestone in the announced capital-raising plan. Investors are watching these dates amid cloud revenue growth and heavy spending on infrastructure.